Eric Trump Loses $600M as American Bitcoin Corp's Shares Plummet to New Low

American Bitcoin Corp (NASDAQ:ABTC), co-founded by Eric Trump and Donald Trump Jr., has seen its shares hit an all-time low, erasing over $600 million from Eric Trump's stake. This decline comes as competitors have pivoted to AI, with companies like Riot Platforms, Cipher Digital, MARA Holdings (NASDAQ:MARA), and TeraWulf (NASDAQ:WULF) announcing deals to expand into high-performance compute infrastructure.

Their shares have averaged over 60% gains this year. In contrast, American Bitcoin's power, sites, and day-to-day mining operations run through Hut 8 Corp under exclusive service agreements, leaving the AI data center optionality with Hut 8 rather than ABTC. Hut 8 has leaned heavily into this strategy.

CEO Mike Ho argued on the Q1 earnings call that competitors shifting toward AI are actually helping American Bitcoin by reducing mining difficulty. 'We're seeing hundreds of megawatts from the leading public miners shift towards AI, which resulted in the network difficulty dropping about 6% this quarter,' he said. Despite this, the company posted a $118.2 million operating loss in Q1.

Eric Trump has expressed confidence in Bitcoin's future, stating 'We are in the greatest period in the history of crypto. Just hold on guys, just hold on.' Benchmark analyst Mark Palmer framed the thesis cleanly: 'From the standpoint of fleet efficiency, fleet size and the ability to produce Bitcoin, the company is very well positioned. The issue, of course, is that the price of Bitcoin needs to be moving up for the business model to work.'

ABTC trades at $5.97, just above its 52-week low of $5.76. RSI sits at 13.54, one of the most oversold readings in the market.